Starting a BusinessStarting a Business

Business TypesBusiness Types

Selecting a Business TypeSelecting a Business Type

How much money do I have to start my How much money do I have to start my business?business?

What will my liabilities be if I am sued or What will my liabilities be if I am sued or go bankrupt?go bankrupt?

How much control of my business do I How much control of my business do I want?want?

How big do I expect my business to grow?How big do I expect my business to grow?

Sole ProprietorshipSole Proprietorship

A business owned A business owned and operated by one and operated by one person.person.– Examples:Examples:

BookstoresBookstores

Coffee shopsCoffee shops

PlumbersPlumbers

Automotive repairAutomotive repair

Hair stylistsHair stylists

Sole ProprietorshipSole Proprietorship

AdvantagesAdvantages– ease of startupease of startup– full Controlfull Control– exclusive rights to exclusive rights to

profitsprofits

DisadvantagesDisadvantages– unlimited liabilityunlimited liability– sole responsibilitysole responsibility– Limited growth Limited growth

potentialpotential– Lack of longevityLack of longevity

PartnershipPartnership

A business owned A business owned and controlled by two and controlled by two or more people.or more people.– Examples:Examples:

Law firmsLaw firms

Doctor’s officesDoctor’s offices

Brokerage firmsBrokerage firms

Ben & Jerry’s Ice Cream

PartnershipPartnership

AdvantagesAdvantages

– ease of start-upease of start-up

– specializationspecialization

– shared decision shared decision makingmaking

– shared business shared business losseslosses

DisadvantagesDisadvantages

– unlimited liabilityunlimited liability

– potential for potential for conflictconflict

– Lack of longevityLack of longevity

CorporationCorporation

A business entity A business entity that has some of that has some of the legal rights of a the legal rights of a person, but is person, but is distinct from its distinct from its owners.owners.

Corporate StructureCorporate Structure

CorporationsCorporations

AdvantagesAdvantages DisadvantagesDisadvantages